OUR MATERIAL FACTORS SOCIAL GOVERNANCE People Excellence Total Workplace Safety & Health Corporate Community Contributions Ethical Business & Regulatory Compliance Cybersecurity & Data Protection Impacts, risks and opportunities (IROs)* One substantial risk we face is the rising competition for talent. This competitive landscape presents an incentive and opportunity for us to strengthen our company culture,and foster a more uplifting and supportive working environment. By doing so, we can enhance employee engagement and satisfaction, making ST Engineering a more attractive place to work. If these opportunities for change are not pursued at a good pace, we may see lower talent retention and productivity. A primary risk we face is the exposure of employees to workplace hazards. This risk provides an incentive and opportunity for us to develop innovative technologies focused on predictive safety measures and hazard detection, strengthening our safety culture. With a more resilient safety culture, we can enhance employees’ sense of security and retention, whilst lowering medical costs and improving productivity. Additionally, these solutions can be adapted as external solutions for our external customers, generating more revenue. Negative risks include misallocation of funds to unintended organisations, non-compliance with local regulations or injury risk during activities, resulting in legal and financial liabilities, as well as negative publicity. These risks are managed by conducting due diligence on prospective beneficiaries, engaging government agencies to understand local regulations and put in place proper procedures and documentation to safeguard our interests. On the other hand, our community efforts could lead to positive outcomes, including new business opportunities and attraction and retention of talent, which will result in an increase in community impact, business profitability, reputation and employee engagement. Our operations across multiple countries introduce exposure to bribery and corruption risks, particularly when engaging local intermediaries to navigate diverse regulatory environments. This is especially pertinent as we pursue growth in international markets. Additionally, the increasingly complex and rapidly changing landscape of global trade rules poses a significant risk. Geopolitical tensions often lead to new sanctions or updates in trade restrictions, which can result in unintentional violations of regulations. Such violations may lead to penalties, reputational damage, and legal liabilities. The emergence of deepfake technology and increasing adoption of generative AI (GenAI) pose considerable threats. Our commercial network needs to be protected against potential malware attacks, data tampering, service disruptions and data exfiltration. On the flip side, the implementation of AIenabled cyber defence mechanisms can enhance our detection and response capabilities, drive continuous improvement initiatives, streamline workflows and generate cost savings. Additionally, developing anti-deepfake technology and expanding GenAI talent through training initiatives will strengthen our organisational resilience. Why it is material We are only as strong as our people. With a capable, motivated and agile workforce, we are able to strengthen our talent pipeline to pursue sustainable growth. We are committed to “Safety Before Profit”. Our aspiration is to create a zero-incident, safe and healthy workplace that protects employees and workers from injury, stress and illness. By doing so, we aim to reduce absenteeism and turnover while increasing productivity and employee morale. Our commitment to safety extends beyond our employees to include all visitors and contractors working on our premises. We are committed to being a good corporate citizen in the places where we operate. Making a positive impact in our host communities is aligned with our core value of compassion. We comply with applicable laws and regulations in the jurisdictions where we operate. We have zero tolerance for fraud and corrupt practices. In addition, we actively protect our data and those entrusted to us by our stakeholders. Digital technology and highly connected economies and businesses bring new vulnerabilities from a proliferation of cyber threats. We protect our data and systems including those entrusted to us. We also comply with all applicable data protection laws and regulations in the various countries we operate in. Cybersecurity is an enabler for our businesses. UN SDGs * ST Engineering’s approach to managing the material factors are included in each material factor’s section. The Group will review and assess each material factor’s IROs from time to time as the ESG landscape evolves. Read more about our Governance, Framework and Commitment for each material factor on our website 13 OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL GOVERNANCE INDEX SOCIAL
RkJQdWJsaXNoZXIy ODIwNTc=